LOUISE W. FLANAGAN, District Judge.
This matter is before the court upon defendant's motion to dismiss for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6). (DE 15). Plaintiff has responded in opposition and defendant replied. In this posture, the issues raised are ripe for ruling. For the following reasons, the motion is granted.
Plaintiff initiated this action in Wake County Superior Court, on December 27, 2018, asserting claims of discrimination and retaliatory discharge against defendant, his alleged former employer, in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e,
Defendant removed to this court on January 24, 2019, and filed the instant motion to dismiss on March 14, 2019. In support of dismissal, defendant relies upon a declaration of Gareth McAllister ("McAllister"), President, Asia Pacific, of defendant, attaching an Agreement for Separation between plaintiff and Lord Japan, Inc. (hereinafter, the "Separation Agreement"). In opposition, plaintiff relies upon a screenshot of defendant's web site. Defendant replied in support of the motion on May 3, 2019.
The facts alleged in the complaint as pertinent to the instant motion, may be summarized as follows.
Plaintiff is a resident of Minnesota, and defendant is a Pennsylvania corporation with principal office in North Carolina. Defendant hired plaintiff on October 4, 2013, for the position of "Regional Director, Japan." (Compl. ¶ 11). During his time of employment plaintiff "received multiple performance-related recognitions and accolades, including being awarded the second highest `spot bonus' in the company and receiving a personal note of appreciation from [defendant's] CEO in 2017." (Compl. ¶ 14).
According to the complaint, in 2016, plaintiff heard "rumors that a colleague, Zhong Bei (`Ms. Bei') did not like him and was spreading false information," including a "complaint against him for sexual harassment in an attempt to get him fired." (
On September 15, 2017, plaintiff met with defendant's manager of human resources in Japan, to discuss the details "of the humiliating situation" "regarding Ms. Bei's offensive and inappropriate conduct." (
According to the complaint, although defendant "ostensibly terminated [plaintiff] for failing to succeed in his role," defendant in fact terminated plaintiff "in retaliation for opposing Ms. Bei's offensive workplace conduct and for making a claim to HR, or in the alternative, [plaintiff's] sexual harassment claim against Ms. Bei was a substantial factor in [defendant's] decision to terminate [plaintiff's] employment." (
"To survive a motion to dismiss" under Rule 12(b)(6), "a complaint must contain sufficient factual matter, accepted as true, to `state a claim to relief that is plausible on its face.'"
Defendant argues that plaintiff's claims under Title VII must be dismissed due to a release of all claims in the Separation Agreement. This raises a threshold issue whether and to what extent the court in this case can consider materials outside of the complaint in deciding the instant motion. Ordinarily, "[i]f, on a motion under Rule 12(b)(6) or 12(c), matters outside the pleadings are presented to and not excluded by the court, the motion must be treated as one for summary judgment under Rule 56." Fed. R. Civ. P. 12(c). In that event, "[a]ll parties must be given a reasonable opportunity to present all the material that is pertinent to the motion."
However, the court may consider documents "attached to the motion to dismiss, so long as those documents [are] integral to the complaint and are authentic"
Here, the Separation Agreement is integral to the complaint because it sets forth the terms of plaintiff's termination that forms the basis for claims of discrimination and retaliatory discharge. Plaintiff specifically alleges in the complaint that "on November 13, 2017, [plaintiff] received notice that Lord was terminating his employment." (Compl. ¶ 42). Plaintiff executed the Separation Agreement on November 13, 2017, and the Separation Agreement expressly memorializes that "[plaintiff] and the Company hereby agree that written notice of termination of employment has been given as of November 13, 2017, and that the employment . . . shall be terminated as of February 13, 2018." (DE 17-1 at 2).
The Separation Agreement is authenticated by the McAllister declaration. (
By contrast, the court does not consider factual allegations in the McAllister declaration, as well as two additional factual allegations suggested by defendant in its briefs in support of the motion to dismiss. Specifically, the court does not consider defendant's assertion that plaintiff was employed solely "by LORD Japan, Inc., a subsidiary of Defendant, not by Defendant," for purposes of plaintiff's Title VII claims. (Def's Mem. (DE 16) at 4). The court also does not consider defendant's assertion that "Plaintiff accepted payments from Defendant in excess of $300,000.00 pursuant to the [Separation] Agreement and has made no attempt to return any portion of the consideration paid to him." (
In sum, the court will limit its analysis to the allegations in the complaint and the contents of the Separation Agreement.
Defendant argues that plaintiff's claims are barred by the release in the Separation Agreement, which provides, in pertinent part:
(Separation Agreement (DE 17-1) at 4). The Separation Agreement further provides:
(
"[A]n employee may waive his cause of action under Title VII as part of a voluntary settlement."
In the absence of statutorily-mandated requirements for waiver of some types of federal claims, such as those under the Age Discrimination in Employment Act ("ADEA"), 29. U.S.C. § 626(f)(1), settlement releases are analyzed "under ordinary contract principles," based upon "the appropriate state's law for guidance."
"A release is the giving up or abandoning of a claim or right to the person against whom the claim exists or the right is to be exercised," and a "waiver is a voluntary and intentional relinquishment of a known right or benefit."
"Interpreting a contract requires the court to examine the language of the contract itself for indications of the parties' intent at the moment of execution."
In this case, the Separation Agreement includes a plain and unambiguous release of "any and all claims in full and final settlement of any rights or obligations that may exist on the date hereof." (DE 17-1 at 4). It memorializes in plain terms compensation paid to plaintiff "in full and final settlement of all of the Employee's rights and/or claims in connection [sic] the employment of Employee as well as the termination of employment" set out in the Separation Agreement. (
On its face, the Separation Agreement is a knowing and voluntary release of all claims, including plaintiff's instant claims of discrimination and retaliatory discharge under Title VII. It states in its preamble that "the Company and the Employee have decided to enter into this Agreement for Separation in order to set forth the terms and conditions of the termination of the EMPLOYEE AGREEMENT by mutual consent," where the term "EMPLOYEE AGREEMENT" is defined as plaintiff's employment agreement with the Company that commenced October 4, 2013. (DE 17-1 at 2). Furthermore, plaintiff initialed each page of the Separation Agreement and signed it. (DE 17-1 at 2-7).
Accordingly, enforcing the Separation Agreement according to its plain and unambiguous terms, where it includes a knowing and voluntary waiver and release, the instant claims by plaintiff against defendant are barred and must be dismissed as a matter of law.
Plaintiff challenges application of the Separation Agreement on several grounds that are unavailing. First, plaintiff argues that the Separation Agreement is not clear and unambiguous because the waiver contained within it does not "make[] it unmistakably clear that the discrimination statutes at issue are part of the agreement," and it does not include an "explicit incorporation of statutory antidiscrimination requirements," quoting requirements set forth in
Plaintiff also argues that the Separation Agreement "invokes Japanese choice of law, calling into question whether any alleged release by [plaintiff] could be considered `knowing.'" (Pl's Opp. (DE 21) at 8). This argument misses the mark. As an initial matter, plaintiff does not demonstrate how invocation of Japanese choice of law alters the analysis of the Separation Agreement for purposes of the release of claims. It is true that the Separation Agreement states that "it shall be interpreted under the laws of Japan." (DE 17-1 at 6). However, "in absence of proof to the contrary, the presumption is that the law of [the foreign country] with regard to the right of recovery is the same as the Law of this country, the lex fori."
Moreover, plaintiff's suggestion in his brief that Japanese choice of law calls into question the "knowing" nature of any release is a conclusory assertion devoid of any factual basis in the complaint or the Separation Agreement. Plaintiff suggests that he may wish to make allegations that the release in the Separation Agreement was not a knowing and voluntary release. The court does not speculate at this juncture what those allegations may be or whether they will be probative to the issue of a knowing and voluntary release. As set forth below, however, the court will provide plaintiff an opportunity to move for leave to amend the complaint, if he so desires.
Next, plaintiff argues that the waiver in the Separation Agreement is not valid because it does not include language that states "Nothing in this Agreement shall be construed to prohibit you from filing a charge with or participating in any investigation or proceeding conducted by the EEOC or a comparable state or local agency." (Pl's Opp. (DE 21) at 8). The language plaintiff quotes, however, is from a consent decree in a case brought by the EEOC in the United States District Court for the Western District of New York. (
Finally, plaintiff suggests that the Separation Agreement is not knowing and voluntary because it did not advise nor allow plaintiff to seek legal counsel prior to signing. Whether there is advice or allowance to seek counsel, however, is a statutorily required consideration for determining enforceability of a waver of claims under the ADEA.
In sum, where the Separation Agreement is clear and unambiguous on its face, and there is no basis to infer it is unenforceable, the Separation Agreement bars plaintiff's claims as a matter of law. Therefore, plaintiff's claims are dismissed for failure to state a claim upon which relief can be granted.
Defendant requests that plaintiff be ordered to pay its attorney's fees and costs associated with this action, pursuant to Federal Rule of Civil Procedure 54(d). As an initial matter, the motion is premature because judgment has not entered in this case. In addition, the court finds that an award of fees and costs to defendant is not warranted under present circumstances. Plaintiff has not pursued frivolous, unreasonable, or groundless claims, or continued to litigate after his claims clearly became so. Accordingly, defendant's request for attorney's fees and costs is denied.
Based on the foregoing, the court GRANTS defendant's motion to dismiss. (DE 15). Plaintiff's claims are DISMISSED WITHOUT PREJUDICE. Plaintiff may file a motion for leave to amend his complaint, accompanied by a memorandum in support and redline showing proposed changes, within 21 days of the date of this order. In the event plaintiff does not do so, without further order of the court, the clerk shall enter judgment in favor of defendant on the basis of this order, and close this case.
SO ORDERED.